“customer awareness and preferring skoda yeti.”
DESCRIPTION
“Customer awareness and preferring Skoda Yeti.”TRANSCRIPT
S SUMMER TRAING PROJECT REPORT ON
“Customer awareness and preferring Skoda Yeti.”
PREPARED FOR
Torque Automotive Pvt. Ltd
Towards the partial fulfillment of
MASTER OF BUSINESS ADMINISTRATION (Affiliated to Gujarat Technical University)
Guided by : Krishna Joshi
Submitted by : Binit Kothari
1
ACKNOWLEDGEMENT
Success of my project depends upon two factors Internal and External factor
includes sincere efforts, dedication to the work and good potential whereas internal
factors includes cooperation and supports of potential customers who patiently hears
about the schemes and plans of Skoda Yeti and then gives response.
Good guidance and cooperation from others are such external factors, which
Affects the percentage of success. Though in completing this project I tried my level
best but it could not be possible without proper guidance from the staff of Torque
Automotive Pvt. Ltd.
I want to give my thanks to Sales Head for his valuable guidance and
suggestions, which I sincerely value and appreciate.
2
PREFACE
The Post Graduate Degree in Business Management is of no such importance
until and unless it is implemented in a practical way i.e. to say that this course is not
restricted to books only. This project report is made on the basis of the summer training
which I undergone for full fledged period of two months. I had undergone training in the
one of the most reputed automobile company, i.e. TORQUE AUTOMATIVE PVT.
LTD. The topic of my training was to know the effective factors of awareness and
preferring Skoda Yeti. Under this topic I was supposed to know the customers‟
satisfaction and dissatisfaction and what they desire in their XUV cars. The training
gave me a lot of understanding about the customers views and requirements and their
future plans for purchasing and thus I made questionnaire on it and accordingly
constructed various graphs on it based on certain analysis.
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EXECUTIVE SUMMERY
In each and every management training scheme there is a provision for real time
job experience within the academics time period. Call it summer training or corporate
training or corporate interaction: the main aim of this is to utilize and implement the
Theoretical knowledge of class room into corporate world. It is well said “nothing is
Much practical than a good theory”. But on very same we can’t deny “Practical is
Better than theory.” Theses phrases are opposing to each other but also are complement
to each other. Experiencing both in a good dedicated manner really plays a lot in one’s
professional life.
In the field of marketing there is no expectation with the market. Field
experience is very much necessary for the market professionals. In the stream of
business the application of theory is very frequent. From the consumer behavior to
consumer satisfaction, we have to study all this in the field of marketing. Marketing is
now so much diversified that now it can be done by mere use of mobile phone and
internet, the experiencing the real marketing tactics is only possible by working in the
field. Therefore I am really thankful to my college and Torque auto for providing me
with this opportunity.
I have worked at different level and at different areas in company. In initial days
I worked on old data, Next job was to make phone calls to those customers who are
Able to purchase luxuries cars to convince them. The third phase was to go directly to
the customers and get their feedback to know about the opinion, complaint and
Suggestion of consumers. I have tried my best to include all these above task in this
Project report.
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PARTICULAR
Page No.
Declaration
Acknowledgement
Preface
CHAPTER-I GENERAL
NFORMATION
1.1 OVERVIEW OF AUTOMOTIVE INDUSTRY
1.1.1 Birth of the car
1.1.2 Indian Automobile History
1.2 COMPANY OVERVIEW
1.2.1 History
1.2.2 Company profile
1.2.3 Organization structure
1.3 DEPARTMENTAL VIEW
1.3.1 Marketing Department
1.3.2Producton Department
1.3.3 Human Resource Department
1.3.4 Finance Department
1.4 SWOT ANALYSIS
1.5 LITERATURE REVIW
CHAPTER II RESEARCH
METHODOLOGY
2.1 Research Problem
2.2 Relevance of Study
2.3 Objective of the study
2.4 Research Methodology
2.5 Implication of study
CHAPER III DATA ANALYSIS AND
INTERPRETATION
CHAPTER IV CONCLUSION
4.1 conclusions
4.2 Limitation of study
4.3 Scope for future research
References
Annexure
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7
Industry overview
BIRTH OF THE CAR
In 1769 the very first self-propelled car was built when Nicolas Cugnot, a French
military engineer designed a steam powered road-vehicles
The vehicle was built at the Paris Arsenal, and was used by the French Army to move
cannons. It had three wheels with the engine in the front along with the boiler. While
Cugnot's 'car' was capable of attaining speeds of up to 6cars/hour, it was far too heavy and
slow to be of practical use.
In 1771 he again designed another steam-driven engine that ran so fast that it rammed
into a wall, recording the world’s first accident.
In 1807 Francois Isaac de Rivaz designed the first internal combustion engine. He to
develop the world’s first vehicle to run on such an engine, one that used a mixture of
hydrogen and oxygen to generate energy, subsequently used this.
This spawned the birth of a number of designs based on the internal combustion
engine in the early nineteenth century with little or no degree of commercial success. In 1860
thereafter, Jean Joseph Etienne Lenoir built the first successful two-stroke gas driven engine.
In 1862 he again built an experimental vehicle driven by his gas-engine, which ran at a speed
of 3 kms/hour. These cars became popular and by 1865 could be frequently espied on the
roads.
The next major leap forward occurred in 1876 when the four-stroke engine was
devised. Gottileb Damlier and Nicolas Otto worked together on the mission till they fell
apart.
Daimler created his own engines that he used both for cars and for the first four wheel
horseless carriage. In the meanwhile, unknown to them, Karl Benz, was in the process of
creating his own advanced tri-cycle, which proved to be the first true car.
After all this experiments we can say that the complete car was birth only in 1885 that
the first real car rolled down on to the streets. The earlier attempts, though successful, were
steam-powered road-vehicles.
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The season of experiments continued across the seas in the United States where Henry
Ford began work on a horseless carriage in 1890. He went several steps forward and in 1896,
completed his first car, the Quadricycle in 1896. This was an automobile powered by a two-
cylinder gasoline engine. The Ford Motor Company was launched in 1903 and in 1908 he
catapulted his vehicle, Model ‘T’ Ford to the pinnacle of fame. Continuing with his
innovations, he produced this model on a moving assembly line, thus introducing the modern
mass production techniques of the automobile industry
Indian Automobile History:
Pre 1984 period: In this era cars were considered a luxury product, government had
full control over the production, Manufacturers were given the license to produce a
predetermined quantity, and expansion was restricted by government. In this period
market was dominated by six licensed manufacturers: TELCO, Ashok Leyland,
Mahindra & Mahindra, Bajaj Auto, Hindustan Motors, and Premier Automobiles.
1985 – 1990: In this period Maruti Udyog was formed with the joint venture between
GOI and Japanese major Suzuki. This led to give a better choice to the consumers in
India.
1991 – 2000: Economic liberalization started in 1991 in India which later on helped to
delicense the passenger car segment in 1993. Hero Honda emerged as a major player
in two wheeler segment. In this era a much sophisticated and unregulated automobile
market started growing with the help of new foreign technology and huge investment
made by international player, as the competition increases advanced technology was
introduced to be competitive in market. A large chunk of money was spent on
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increasing the service presence so as to support on road vehicles. Auto finance also
started as a key factor to affect the demand for the vehicle.
Post 2000: As the competition increases the government also helps the industry by
removing quantitative restriction and allowing 100 % FDI in Automobile industry. It
also gave helping hand to various Local manufacturers who initiated production of
Vehicle.
Manufacturers focused on improving the output keeping in mind Quality and
environment prospects.
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HISTORY OF SCODA INDIA
Skoda works was established as an arms manufacturer in 1859, but did not develop
automobiles. The origin of what became Skoda auto goes back to early 1890s where, like
many long-established car Manufacturers Company started out manufacturing bicycles. It
was 1894, and 26-year old Vaclav klement, who was a bookseller in Mlada Boleslav, in
today’s Czech Republic, which was then part of Austria-Hungary, was unable to obtain spare
parts to repair his German bicycle. Klement returned his bicycle to the manufacturers, Seidel
and Neumann, with a letter, in Czech, asking them to carry out repairs, only to rece ive a
reply, in German, stating: “If you would like an answer to your inquiry, you should try
writing in a language we can understand”. A disgusted Klement, despite not having technical
experience, decided to start a bicycle repair shop, which he and Vacla v Laurin opened in
1895 in Mlada Boleslav. Before going into business partnership with Klement, Laurin was
established as a bicycle manufacturer in the nearby town of turnover.
In 1898, after moving to their newly-built factory, the pair bought a Werner
“motorcyclist”, which was produced by French manufacturer Werner brothers. Laurin &
Klement’s first motorcyclist, powered by an engine mounted on the handlebars driving the
front wheels, proved dangerous and unreliable-an early incident on its cost Laurin a front
tooth. To design a safer machine with its structure around the engine, the pair wrote to
ignition specialist Robert Bosch for advice on a different electromagnetic system. The pair’s
new salvia motorcycle made its debut in 1899.
In1900, when the company had a workforce of 32, salvia exports begun, with 150 machines
shipped for London for the Hewston firm. Shortly afterwards, the press credited them as
makers of the first motorcycle, the first model, voiturette A, was a success and the company
was established both within Austria-Hungary and internationally. By 1905 the firm was
manufacturing automobiles.
After WW1 the Laurin-Klement company began producing trucks, but in 1924, after
running into problems and being hit by a fire, the company sought a partner, and was
acquired by Skoda Works, an arms manufacturer which had become a multi-sector concern
and the biggest industrial enterprise in Czechoslovakia. Later production was under the
Skoda name. After a decline during the economic depression, Skoda was again successful
with models such as popular in the late 1930s.
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Skoda auto is a part of international Volkswagen group, one of the premium
automobile manufacturers In Europe. Skoda entered the Indian market in November16, 2001.
The company invested in a plant at shendra, outskirts of Aurangabad, the only manufacturing
facility of the company outside Europe. The brand Skoda Auto is known for its stylish looks,
well built exterior and its constant endeavour to introduce modern technologies.
Till date Skoda Auto introduced twelve luxury models in the Indian market including
Skoda Superb and Skoda Laura. In 2005 the company achieved more than 25% market in the
luxury 1segment. In the same year It had set up a network of 41 dealership equipped with 35
facilities spread across the country. The total sale was close to 27,000.
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SKODA LOGO
1926-1933
This company has been founded in the year 1895. In Mladá Boleslav cars have been
manufactured under the brand Skoda and though the name brand has been completely
changed in form of novel product logo is visible continuity with previous stage and the logo
of this company has a novel which is of oval shape where the brand name is yet a dominant
one in the center bounded laurels.
1926-1990
The first logo of became so popular which is of which is of winged arrow and this particular
one has already been used earlier in 1926.Below is a clear view of logos of Skoda company
with clear description behind the design!
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COMPETITORS OF SCODA
The following are the major players of automobile industry in the world
1) FERRARI:
Ferrari is a sport car manufacturer based in Maranello, Italy. Founded by Enzo Ferrari in
1929 as Scuderia Ferrari, the company sponsored drivers and manufactured race cars before
moving into production of steel- legal vehicles
in 1947 as Ferrari. Throughout its history, the company has been noted continued
participation in racing, especially in formula one, where it has enjoyed great success.
2) FORD:
The Ford Motor Company is an American corporation based in Dearborn, Michigan, a suburb
of Detroit. The automaker was founded by Henry Ford and incorporated on June
16,1903.ford introduced methods for large- scale manufacturing of cars and large-scale
management of an industrial workforce using elaborately engineered manufacturing
sequences typified by moving assembly lines.
3) B.M.W.:
Bavarian motor Works (BMW) is a German automobile, motorcycle and engine
manufacturing company founded in 1916. It also owns and produces the MINI brand, and is
the parent company of Rolls-Royce Motorcars. BMW produces motorcycles under BMW
Motorrad and Husqvarna brands. BMW is known for its performance and luxury vehicles.
4) MERCEDES:
Mercedes-Benz is a German manufacturer of luxury automobiles, buses, coaches and trucks.
It is currently a division of the parent company, Dailmer AG (formerly DailmerChrysler AG),
after previously being owned by Dailmer-Benz. Mercedes-Benz has its origins in Karl Benz’s
creation of the first petrol-powered car, the Benz patent motor wagen, patented in January
1886. The
Mercedes automobiles were first marketed in 1901by Dailmer Motoren Geselleschaft. The
first Mercedes-Benz brand name vehicles were produced in 1926.
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5) CHEVROLET:
Chevrolet is a brand of automobile produced by General motors’ company (GM). Founded by
Louis Chevrolet and ousted GM founder William C. Durant on November 8, 1911, Chevrolet
was acquired by General Motors in 1917.
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COMPANY OVERVEIW
HISTORY OF TORQUE AUTOMOTIVE PVT. LTD
Torque Automotive Pvt. Ltd. started its journey in 2002, having one showroom and
one service centre. Torque has today grown to be one of the leading Skoda dealership
network in the western region having state of the art facilities in all major cities of Gujarat.
Our hard work has brought us many awards from Skoda Auto India Pvt. Ltd. (such as, ‘Best
marketing performance in 2007’, ‘Best dealer of the year in 2008’ and “Highest sales
achievement in 2009’), awards that come as a confirmation of our growth and commitment
towards our customers.
Torque Group has been operating in the automobile business with world’s leading premium
brands through across the state of Gujarat. The Torque Group Gujarat strategy encompasses
significant investments in branding, marketing, exclusive dealerships and after sales service
for the upcoming years. The group has employee strength of over 450 people with the lowest
attrition rate in the industry. Torque Group's success is principally attributed to the large set
of satisfied employees and its customer centric approach. Customer service is at the centre of
all the activities across at all levels in the Group.
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COMPANY PROFILE
\
Business type Private
Industry Automobile
Established in 2002
Sales volume 500 cars/year (approx)
Employees 450
Revenue 2 crores (approx)
Head quarter Vadodara, Gujarat, India
Parent Skoda Auto India
Key people Mr. Satish Bhungaliya (Owner/Director),
Mr. Emish Mali (General Manager)
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VISION
The most respected Company in the eyes of our people for the care, concern, and the
pride in work that we create and provide.
VALUES
• Satisfy consumers & business associates by providing high quality products and
excellent services
• Development and Growth of people through training, job enrichment and
empowerment
• Employees to show high level commitment, ethics and principals
WORK-CULTURE
Quality is an integral part of Torque Auto motive’s well-defined and dynamic Human
Resource (HR) policy. The company follows a strong value system which is driven by result
orientation, adaptability to change, humility and respect for colleagues and peers. We believe
that investment in human capital is the key source of competitive advantage and sustained
growth.
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MILESTONES OF THE COMPANY
Torque marks a milestone by launching the largest Skoda 3S facility in India
On 1st March 2012, Torque opened its doors to India’s largest Skoda 3s facility at
Ahmedabad spread across 60,000 Sq Ft. It signifies an arrival of new era for Torque.
Conceived by a renowned Architect of Gujarat, Mr. Talib Patel the new building has a highly
distinctive and timeless design that reflects the Skoda brand value and displays its products in
the best fashion. The building is designed to cater changing customer needs and to give them
a whole new Skoda experience. The architectural brilliance and idea combines the efficiency,
performance, luxury, and environmental themes that the brand has become known for in its
vehicles.
The basement level is an engineering wonder, housing a 52 bay advanced workshop which
not only has a spacious to and fro access alley and but also a large and opulent dedicated
elevator to transport cars in and out of the workshop.
A part of the ground and first floor has the state of the art showroom showcasing models
across the range at a variety of perspectives; the raking glass facade and vast space allow
optimum natural light thus providing discerning customers with a relaxing atmosphere. The
customer lounge and comfort zones are furnished with bespoke-designed furniture having an
upscale, comfortable atmosphere for customers to be at ease.
The other sections of the floors exude a professional look and accommodate imposing rooms
for Managing Director, Directors, Managers, Meeting, Conference, Prayer and Dining. A
fluid and entwining work environment in created in which Managing Director, Directors,
CEO, Mangers, Executives and cars mingle together breaking down the traditional
hierarchies that have defined the work environment.
The new 3S facility provides ample parking for sales and service customers. The customer
lounge is designed to make customers waiting for repairs feel right at home with all the
amenities they might expect at a luxury car dealer. We offer an unrivalled refreshment
service, customers can relax and enjoy a fresh cup of ‘cafe coffee day’ freshly brewed coffee
or tea and catch up with daily news or current affairs reading selection of newspapers and
magazines. Our dining hall is open to them if they wish to have lunch too. If they prefer to
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carry out work while waiting we offer a complementary Wi-Fi access and in special cases
one of our meeting rooms.
After the service the car is enclosed in a cover to protect from sun and dust. We deliver it to
the customer sparkling and in the best possible condition. From start to finish, we aim to offer
complete customer satisfaction.
Our new 3S facility strengthen our desire to continuously evolve to inspire our customers,
winning their trust and confidence by offering an ambience that is both unique and suitable
for a premium brand. Its innovative architecture makes it an instantly recognisable feature
and a unique landmark in Ahmedabad and a new Icon in India.
YEAR
2002 Best Target Achivement Award
2007 Best Marketing Perfomance Award
2008 Best Dealer of the year
2009 Highest sales achievement award
2010 Highest retail sales
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DEPARTMENTAL STUDY
ORGANIZATION STRUCTURE
MANAGING DIRECTOR
WHOLE TIME DIRECTOR
GENERAL MANAGER
ASS. GENERAL MANAGER
MANAGER
DEPUTY MANAGER
SENIOR OFFICER
OFFICER
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HUMAN RESOURCE DEPARTMENT
INTRODUCTION
Human resource management is defined as the managing function of employees,
developing and compensating HR resulting in creation and development of human relations
with the view to contribute proportionately to the organizational, individual and social goal.
VALUE STATEMENT
“We consider our employees as our most valuable asset and are committed to provide
full encouragement and support to them, to enhance their potential and contribution to the
company’s business”.
1) HR ACQUISITION
RECRUITMENT
Recruitment is the process of ‘finding and attracting capable applicants for
employment. The process begins when new recruits are sought and ends when their
applications are submitted. The result is a pool of applicants from which new employees are
selected.
SOURCES OF RECRUITMENT
1. CONSULTANCIES
The department heads where requirements are needed informs to the HR department
about the requirement. The concerned persons for recruitment gets approval for filling the
vacancies. Then the consultancies are approached telling the requirements. The fit
applications are mailed to attend the interview. If satisfied, they are called for the personal
interview.
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2. CAMPUS RECRUITMENT
The recruitment panel goes to the reputed colleges to select the candidates.
On the following basis they recruit the candidates
GETs - Graduate Engineer Trainees
DETs - Diploma Engineer Trainees
ITI
- Industrial Training Institute
3. LATERAL ENTRIES
They pick the experience candidates or people from other companies. The following
is the process of lateral entry recruitment:
1. Sourcing
2. Interview
a. Written test
b. Technical round interview
c. Personal Interview
PROCEDURE FOR LATERAL RECRUITMENT
Pre-Selection
Selection
Post-Selection
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PHASE 1: PRE-SELECTION
HR
REQUIREMENT
REQUISITION
FUNCTIONAL HEAD
APPROVING AUTHORITY
IDENTIFICATION OF
PROSPECTIVE CANDIDATE
Job site search
Internal references
Hiring consultants
Direct applicants
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PHASE 2: SELECTION
SCREENED RESUMES
SENT FOR FURTHER
SHORT-LISTING TO THE
FUNCTIONAL HEAD
INITIAL HR SCREENING
PERSONAL INTERVIEW
DISCUSSION AND FINAL
INTERVIEW BY THE
INTERVIEW PANEL
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PHASE 3: POST SELECTION
OFFER NOT ACCEPTED OFFER ACCEPTED
HR INFORMS THE
FUNCTIONAL HEAD AND
CLOSES THE CASE
SALARY AND GRADE FIXATION
BY APPROVED AUTHORITY
INITIAL OFFER COMMUNICATED
TO THE CANDIDATE
NEGOTIATION WITH THE
CANDIDATE
HR INFORMS THE
FUNCTIONAL HEAD
ABOUT PROBABLE DOJ
NEW HIRES
HR ISSUES OFFER LETTER
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SELECTION
The selection procedure is concerned with selecting the right candidate at right time for
right place. The selection procedure saves a lot of time and money by eliminating candidates
who are not eligible for the post.
STEPS IN SELECTION
Receiving of application
Preparing of shortlist by the department
Verification of resume by department head
Interview (one round)
Psychological test
Reference/Background information
Final selection
Placement
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2) HR DEVELOPMENT
TRAINING
Training is an on-going process aimed at capability-building of the employees at all
levels. In today’s competitive mileu, organizations are increasingly turning to training to
capture the cutting edge. As they manage growth in a constantly changing enviro nment.
Purposive training and planned re-training have an acquired priority status on the corporate
agenda. Centre stage in Torque Automotive training endeavours is the management
development centre, at Chennai and Hosur. Training programme is classified into
Skill
Knowledge
Attitude
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TRAINING PROCESS OF TORQUE AUTOMOTIVE LTD.
Training Need
Input Sources
Business Plan Priority Needs
of depts./ units
Competency
Mapping
Yes Initiative
Competency
Mapping
Performance
Appraisal
3600 Feedback
Quad 1
Executives
Climate Survey
Training Plan
Training Objectives
Learning Outlines
Programme Design &
Methodology
Identification of
Faculty Resource
Effective Measures
Schedule of Training
Schedule of Training
Training Effectiveness
On- The – Job
Evaluation
Evaluation of Faculty
Resource
Evaluation of Training
Programme
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TRAINING PROGRAMME
WORKMEN CAPABILITY BUILDING
Training & Development for the unionized employees is focused on skill
development. Both internal and external training is given for associates. Guest lecturers of
external faculty .
TRAINING FOR SENIOR/ MIDDLE LEVEL MANAGEMENT
Both external and internal training is given for the executives. Faculty from outside
agencies will be arranged for training them. They also get faculty from corporate level.
Training for senior/middle level management is done on the following basis:
1. Technical
2. Behavioural
3. Functional
MANAGEMENT DEVELOPMENT PLAN
Management development plan of Torque Automotive focuses on the following
competencies
People leadership
Transformational leadership
Project management capability
Result orientation
Entrepreneurial perspective
HR processes such as job evaluation and competency mapping will be dovetailed into the
development plan to enhance objectivity and effectiveness.
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DEVELOPMENT ACTIVITIES
The following are the developmental activities:
TEI – Total Employee Involvement
CFG – Cross Functional Group
QC – Quality Circles
SS – Suggestion Scheme
Re-deployment
3) PERFORMANCE AND COMPENSATION
PERFORMANCE APPRAISAL
“Performance appraisal is the systematic evaluation of the individual with regard to his or
her performance on the job and his potential for development”
In Torque Automotive graphical scale method is followed, it is also known as linear rating
scale. In this, a printed appraisal form is used for each appraise. The form consists of various
employee characteristics and his job performance. Various characteristics include initiative,
leadership, dependability, creative ability, analytical ability etc..,
The rating is done on the basis of scale which is in continuum representing various degrees of
particular quality. Torque Automotive use numbers say 5, 4, 3, 2 and 1 to denote points for
various degrees of excellent-poor, high-low, good-bad and so on.
The appraisal form is divided into 8 parts where under each part separate sections are being
covered.
Part I- Performance in the present job (Employees achievements, goals)
Part II- Work behaviour (Plans, objectives, activities, execution of plans)
Part III- Abilities (Job knowledge, commitment to achieve results at work)
Part IV- Potential ( Areas of interest, personality traits, strength, weakness)
Part V- Overall performance rating ( Based on assessment of part I, II III)
Part VI- Training need (To improve performance in present job, to assume higher
responsibility)
Part VII- Development plan (Job rotation, job enlargement, special assignment/
reputation)
Part VIII- Other comments
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Five point scale of Torque Automotive showing levels of performance:
5- Exceptional - Consistently outstanding performance.
4- Superior - - Performance which is consistently significant beyond job
Requirements contribute in related area also.
3- Good - Performance which adequately meets job requirements
And occasionally produces good over and above requirements
2- Barely satisfactory - Just meets minimum job requirements
1- Unsatisfactory - Does not meet job requirement at all.
The appraisal form also consists of customer satisfaction survey where the need, service
provider and period of assessment are all identified. It also follows graphical scale method
using a five point scale based on the criteria
1) Quality (Customer needs, service information, quality works, complaints etc..,).
2) Delivery (Delivery time, point of use, use or parts/service information)
3) Communication (Interaction with customers, listening to customer views, timely feedback,
and review changes with the customer)
4) Responsiveness (Responding to customer complaints, changes to customer needs)
5) Improvement (Positive attitude for improvement, implementation & effectiveness of
improvement and improvements at the customer end)
Overall Customer Rating = 1+2+3+4+5
5
EMPLOYEE RETENTION
Performance linked pay
The company has an annual appraisal system in place and pursuant to this system,
performance linked pay, annual variable pay and/or commission is paid to the employees.
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Employee motivation
Torque Automotive targets 100% of its employees to be involved in its continuous
improvement activities. Reward systems such as IMPROVE, RISE, BITES, 100% CLUB and
GEMBA passport scheme motivates people to contribute their ideas.
INCENTIVES
1) Surcharge on Direct Booking Incentive.
2) Special Incentive Scheme.
Employee welfare schemes
The following are the welfare schemes available to the employees.
Canteen facilities
Medical claims
Transport facilities
Torque Automotive school for their children
Scholarship schemes
Recreation facilities
BENEFITS
1) Tuition fee refund:
Reimbursement of expenses related to course fees, examination fees and purchase of books
is allowed upto 75% of amount spent per academic year subject to a maximum amount as
given by personnel administration.
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2) Major medical plan:
Benefits will be available within the laid down overall limits for self dependants viz.
reimbursement of medical expenses and interest free loan
3) Medical reimbursement:
Domiciliary expenses incurred on domiciliary medical treatment shall be reimbursed subject
to the annual limits fixed from time to time.
4) Domestic travel:
Boarding and lodging expenses per diem allowance, when an employee opts to makes his
own arrangements , out of pocket expenses, other expenses such as local conveyances, office
phone calls.
5) Conveyance reimbursement:
It is made on self certification of expenses by the executives. This will stand
withdrawn in the event of company transport being provided.
6) Vehicle loan:
Interest free loan up to 100% of the cost of a new two wheeler subject to a maximum
limit stipulated from time to time.
7) Group term insurance:
It is in addition to the accident insurance cover provided by the company for
executives. In the event of accidental death, the beneficiaries will receive benefit under both
policies.
8) Sixth day compensation (ie. Saturday):
Executives in CG 25 (Corporate Grade) and below will be paid 7.5% of basic salary
for every 6th day (optional) worked. The 6th day compensation as indicated above will be
considered as salary for the purpose of contribution to PF and eligibility for bonus/ Ex-gratia.
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9) Maternity leave:
Total period: 12 weeks leave with pay (6 weeks before delivery and 6 weeks
immediately following the delivery) for lady executives.
10) Leave:
All executives are eligible for privilege leave (PL)-30 days, sick leave (SL)- 7 days,
casual leave (CL)- 7 days, national and festival holidays. All leave will be credited in
January, every year.
11) Retirement age:
The age of retirement from company’s service will be the last day of the calendar
month in which the executive attains the age of fifty eight years.
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3) MOTIVATION
CREATING MOTIVATING ENVIRONMENT
GEMBA:
Gemba is a Japanese word meaning “Real Place” where the real action takes place.
In the manufacturing business, Gemba is the shop floor; in a service business, the place
where the customer and the service come together. It is also the quality of human interaction
in the workplace between co-workers, with customers and business partners.
Launched in June 2005 as a company- wide initiative, Mission Gemba’s objective is to
provide information, develop skills and empower employees to reach world-class levels in
quality, cost and delivery. The logic is simple and undisputable: value is created at the
Gemba and the Gemba knows its work best.
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EMPOWERMENT AND PARTICIPATION
IMPROVE
Improve is an annual company- wide event to record, recognize and award employees for
their positive involvement in organizational growth innovation and customer satisfaction.
RISE
The expansion for RISE is Reward For Individual Search For Excellence. It is an integrated
award and is given to the associates. If an employee does some good activity or work apart
from his usual one he is being awarded with RISE.
TQM – Total Quality Management
The main objective of the TQM cell is to set human in a good manner to achieve the goals.
The quality circle includes 6 people which include 5 associates and 1 executive. Their main
function is to identify the problem, find the solution and to implement it.
HR MOBILITY
PROMOTION OPPORTUNITIES
Promotions is based on the seniority, eligibility for post, efficiency, skill, qualification etc..,
the management decides whether to fill a post of outside recruitment or through promotion.
Workman shall be considered for promotion to a post based on certain rules.
He has rendered a minimum period of qualification service of five years.
He possesses the qualification prescribed for the post to which he is to be considered.
Fulfils prescribed attendance.
38
SEPARATIONS
Separation involves cessation of services of personnel from an organization. When
people leave the organization, Exit interviews are usually conduc ted to know the reasons for
leaving. The common reasons given are:
Better opportunities
Lack of growth
ALLOWANCES
House rent allowance
Washing allowance
Uniform and stitching allowance
Night shift allowance
Conveyance allowance
Milk and vitamins allowances
Flexibility allowance
Quality certification allowance
Direct production allowance
39
A) FINANCE DEPARTMENT
INTRODUCTION
Finance is considered as the life blood of business. This is because in the modern money-
oriented economy, finance is one of the basic foundations of all kinds of economic
activities. Finance function may be defined as the procurement of funds and their
effective utilization.
RESPONSIBILITIES OF FINANCE DEPARTMENT:
The pricing department is responsible for the fixing of prices for sales of the vehicles
and for setting different schemes of discount to offer.
Treasury section is responsible for all kinds of funding managements such as
investments.
Taxation section is responsible for remittance of tax, filing of returns, handling of
litigations etc..,
Costing and Budgeting department is responsible for the unit costing of each product
in particular, such as spare parts and a vehicle as whole..
40
DEPARTMENTAL STRUCTURE
(AUTHORITY FLOW)
MANAGING DIRECTOR
CHIEF FINANCING OFFICER
GM-FINANCE
OFFICER
DIVISIONAL MANAGER
MANAGER
41
ROLE OF FINANCE:
Recorder (accounting) of all Financial Transactions
Reporting of Financial Performance
Arranging long and short term funds – Capital and Debt
Working Capital Management
Compliance of tax and other corporate laws
Risk Management
Controllership function
Audit coordination
Investor Relations
PROCESS & ACTIVITIES OF FINANCE:
a) Financial Accounts
Quarterly, Half-yearly and annual results
Review / audit coordination.
Annual Reports – Disclosures made are comprehensive; complied much before they become
mandatory
Early completion of accounts, audit process; forefront in adherence to accounting standards &
other guidelines.
Audit Committee – comprises of Stalwarts from the profession.
Automation of processes
B) Financial Planning & Control
Financial Planning includes estimating the amount of capital to be raised and laying down the policies
as to administration of the financial plan.
Monthly MIS: Very Comprehensive with wider coverage and highly informative.
Monthly review covers business volumes, market share, physical and financial parameters
including alerts on laggards, exceptions in all fronts.
Exception reporting and Profit management measures form integral part of this process
42
c) Treasury Management
- Raising of Funds
- Funds Management
- Debt Servicing
- Risk Management
• Financial instruments for Funds raising would depend on end use of funds; de-risking is an
important consideration in deciding the instrument.
• Capex and long term working capital requirements are funded through share capital and long-
term debt.
-Short term Funds: Cash credit, Demand Loans, Commercial paper, FCNR, etc.
• Funds Management includes managing collections and outflows and surplus/deficit
management. Closer working with Marketing and Units is vital.
• Surplus management includes investment in Fixed Deposits, Mutual Funds, etc., Direct
investment in equity avoided.
• Debt Servicing includes repayment of principal and payment of interest on due dates and
ensuring that commitments made are adhered to.
• Risk Management is vital since organization is exposed to both currency as well interest rate
risks. Risks offer both threats and opportunities (can increase income or reduce expenditure).
Results depend on how well they are managed.
d) Costing & Pricing
• Strategic pricing of products, quotes for various tenders.
• Special pricing for export contracts.
• Monitoring of cost of production of various models and for make or buy decisions
• Project / capex evaluations for optimization and for making commitment decisions
e) Taxation
• Compliance with Direct (Income Tax Act, Wealth Tax) & Indirect Taxes (Excise, Customs,
Service Tax, Sales tax etc).
• Tax planning is an important component of business decisions.
• Recent major developments include introduction of Service Tax legislation and VAT across
many States.
43
• Aligning the business process across the organization and maximizing the benefits against
such legislations is a major task handled by Finance.
• Regular tasks include remittance of tax, filing of returns, handling of litigations etc.
PLANNING & MANAGING CASH FLOWS:
1. Planning cash flows
Rolling Quarterly cash forecast prepared and monitored weekly seeking explanation
for variance in order to control and direct operations.
FINANCIAL CHALLENGES AHEAD:
• Global slowdown challenging break even.
• Decrease in Margins due to inability to pass on cost increases due to competitive pressures –
partially compensated by increase in volumes.
• Profitability pressures due to changes in business mix and commodity price movements.
• Forex management – unforeseen volatility in major currencies; particularly important with
forex loans
• Supporting inorganic growth – evaluation & funding of emerging options.
• Increase in interest rates
44
C)MARKETING DEPARTMENT
INTRODUCTION
Marketing is concerned with the people and the activities involved in the flow of goods and services
from the producer to the consumer.
Torque Automotive has been offering world class products to millions of customers to 40 countries
across the world.
Its main product line includes Trucks, Buses, Defence vehicles and special vehicles and engines for
Indian and Overseas market.
KEY ASPECTS OF APPROACH:
SALES & SERVICE
MARKETING CUSTOMER SUPPORT
45
ADVERTISING:
The need for advertising was felt by Torque Automotive in 2006-
07 when they had to project the transformation that has occurred within Torque Automotive ,
but as yet not communicated to the public. They came up with a product related Ad campaign
and a Corporate campaign. Their aim was to let their target audience perceive their brand as
International, Innovative and Speedy, which has always been their core brand value. At the
All India PR awards 2007 conducted by the Public Relations Society of India (PRSI). Torque
Automotive won the second prize for their corporate campaign. They gave a prelude to the
campaign by exhibiting their product range and their field of pioneering.
Also a television commercial was aired in 2007. The commercial was made in
two languages- Hindi and Tamil. It was broadcast on mainline news channels for wider
coverage. There were translates placed at airports for greater visibility.
TORQUE AUTOMOTIVE - THE BRAND:
“ENGINEERING YOUR TOMMOROWS” has been Torque Automotive’s Brand
promise. The tag line finds expression at two levels: on the hard core strategy level, that is the
sum total of the essential values of vehicle technology-safety, comfort, economy and ecology;
on the inspirational level, it denotes a warm and caring relationship with each stake holder in
a unique way.
46
MARKETING PROCESS:
CUSTOMER
MARKETING ENVIRONMENT:
Legislative changes related to commercial vehicles.
Improving efficiency in railway operations.
Customers demanding more from manufacturers.
Service products becoming important buying decision.
Entry of multi-national players.
BUSINESS INTEREST:
High class population.
Exports
Spare parts
Service products
DELIVERING
Sales Service
Network Planning
UNDERSTANDING
Customer /Markets
Marketing Initiatives
SUPPORTING
Parts AMC
Used Vehicles
Transport Exchange
47
SKODA YETI PROMOTION
Following are the promotional strategies of Skoda Yeti
ADVERTISING
Advertising is promoting a product via/through the media. Advertising must
reach the target audience. It has to emphasise the characteristics of the product that
will appeal to the potential consumer. In advertisement that can refer to the unique
selling proposition of the product and if that is not available company can promote
by brand imaging. Advertising can be done by different kind of media are as follow:
- Newspapers
- Magazines
- Direct mail letters
- Radio
- Television
- Billboards
- Posters
- Internet
48
The advertise needs to have a specific target group and should get the
attention of the potential customers. In the end the company want with advertising is
the customers attention and create the desire of the customer to buy the product
instead they buy the product of the competitor.
Yeti gets promoted by Skoda by different kind of advertising because it has
different target groups. It gets promoted on the website of Skoda. The website
includes all the features of the car. It also gets promoted in the bus iness line, they
put it in a magazine which especially business people read. The basic line promotion
of Skoda is to get it promotes on television because everybody is watching television
and not only business man. So with television their target group is wider.
In one of the television commercial of Skoda we can see some of the unique
selling points. Like speed, design, where we can buy it. In the commercial we also
see a beautiful landscape with this they also try to link that the car is better for the
environment than other cars
49
SWOT ANALYSIS AND POSITIONING OF SKODA YETI
SKODA YETI
Logo
Parent company Skoda auto
Category sedan, hatchback, suv
Sector Automobiles
tagline/slogan the right of way
Usp tough,off- roader characteristics and features,
comfortable
STP
Segment suv
target group families and off roader drivers
Positioning positioned as a tough car built for rough
terrains but at the same time comfortable for a
drive
SWOT ANALYSIS
Strength 1. great driver visibility due to high driving
position
2. well suited for off roads due to great
handling capabilities
3. handy and convenient features to use
4. easy to drive in traffic and in city due to
increased driver visibility
5. also known as skoda sandi in some markets
6. škoda yeti has been awarded a 5-star safety
rating by the euro ncap
Weakness 1. skoda has not been penetrating into
emerging economies as some of the other
competitors
2. slightly expensive product but hasn’t been
50
able to capture the premium market as per its
potential
Opportunity 1.collaborations with automobile entities to
penetrate deeper in the market through
distribution and servicing network
2. augmenting automobile market
3.attracting more middle income class
customers
Threats 1.rapid technological innovations
implemented in upcoming cars
2. intense competition from national car
manufacturers
3.intense competition in thesuv market
COMPETITION
Competitors 1.hyundai tucson
2.maruti grand vitara
3. tata aria
51
LITERATURE REVIEW
The Factors Affecting on Consumers' Repurchase Intention toward an Automobile Brand:
An Application of Reasoned Action Theory
AUTHOR(S)
(Ranjbarian, Bahram; Fathi, Saeed; Kamali, Abdolnabi, October 2010
European Journal of Social Sciences;Oct2010, Vol. 16 Issue 3, p361
SOURCE TYPE
Today automotiv e industry is a driv ing f orce f or economy of most dev eloped and dev eloping countries. So the present study has been carried on
to analy ze the inf luencing f actors on consumers' repurchase intention toward a brand of automobile. Theory of reasoned action has been used in
this study to measure consumer repurchase intention. The theory consider consumer attitude towards action and subjectiv e norm s as inf luencing
f actors on consumer purchase intention. In this study , consumer's inv olv ement to product class and the amount of his/her attention to social
comparison inf ormation, also added to the model to measure consumers' repurchase intention. This is a descriptiv e research which conducted in
a surv ey method. Statistical population of the study was 482 f aculty members of University of Isfahan. The sample size was 86 that was chosen
by a classif ied random sampling method. The data gathering instrument was a questionnaire which its reliability coef f icient calculated by cronbach
alpha was 0.751. The results showed that in studied population, subjectiv e norm was the most inf luencing f actor on repurchase intention.
CUSTOMERS BRAND AWARENESS
There’s a familiar adage among sales people that says “nothing happens until
something is sold.” In marketing, that saying could be changed to “nothing is sold
until someone’s aware of it.”
Brand awareness is a marketing concept that measures consumers' knowledge
of a brand's existence. At the aggregate (brand) level, it refers to the proportion of
consumers who know of the brand. Brand awareness can be measured by showing
a consumer the brand and asking whether or not they knew of it beforehand.
However, in common market research practice a variety of recognition and recall measures
of brand awareness are employed all of which test the brand name’s association to a product
category cue, this came about because most market research in the 20th Century was
conducted by post or telephone, actually showing the brand to consumers usually required
more expensive face-to- face interviews (until web-based interviews became possible). This
has led many textbooks to conceptualize brand awareness simply as its measures, that is,
knowledge that the brand is a member of a particular product category
52
Rothe and Benson's (1974) notion of "intelligent consumption" and Fisk's (1973) concept of
"ecological imperatives" reflect the need to educate the consumer to become aware of environmental
problems and their relation to his/her consumption patterns
Many believe that social marketing (A. R. Andreasen, 1994) can have a major impact on the society’s
myriad social problems. However, this impact can be seriously compromised if the technology is
applied incorrectly or to areas in which is not appropriate. Consumers have more power than ever
before
(Ottman 1993 and M. J. Polonsky 1994) have studied that a majority of people believe that green
marketing refers solely to the promotion or advertising of products with environmental characteristics.
Brower and Leon (1999) have urged the customers to take steps such as driving fuel –efficient, low
polluting cars, eating less meat and making their homes energy efficient.
J. Weeks (2008) studied that green buying choices can be complicated, and green products often cost
more than conventional alternatives
53
RESEARCH METHODOLOGIES
MARKETING RESEARCH
Definition of marketing research as approved as by the board of directors of the
association of American marketing association is:
“Marketing research is the function which links the customer and public to the
Marketer through information – information used to identity and define marketing
opportunities and problems generate define and understanding of marketing as process”.
Simply, marketing research is the systematic design RESEARCH METHOD
It must be classified on the basis of the major purpose of the investigation. In this
problem description studies have been undertaken, as the objective of the project is to
conduct the market shares study to determine the share of market received by the
company to the competitor.
DATA COLLECTION
The information needed to further proceed had been collected through primary and
secondary data.
PRIMARY DATA
It consists of information collected for the specific purpose, survey research was used
and he all the details of Ford and their competitors were contacted. Survey research is the
approached gathering description and information.
CONTACTED METHOD
The information was solicited by administering structured questionnaire to the
customer and dealers, thus getting to know directly from the dealers their sales before
and after sales service.
SECONDARY DATA COLLECTION
The secondary data consists of information that already existing somewhere having
been collected for another purpose. Any researcher begins the research work by first
54
going through secondary data. Secondary data includes the information available with
company. It may be the findings of research previously done in the field. Secondary data
can also be collected from the magazines, news papers, internet other service conducted
by researchers.
METHODS OF DATA COLLECTION
The basic method adopted in conducting the study is a structured questionnaire
.Questionnaire is administered on the sample respondents. However there are certain
cases where personal interactive method is followed with customers to find the
satisfaction level.
Descriptive study
A Sampling technique Convenience sampling
B Sampling unit The Customers of car in Rajkot city
C Sampling size Consumer 100
55
OBJECTIVES
PRIMARY OBJECTIVE
To know the effective factors of awareness and preferring SKODA YETI.
SECONDARY OBJECTIVES
Evaluate the parameters which influence the intention to purchase SUV vehicle.
The Research so carried out would help me in understanding the consumer’s attitude
towards the product and also help me to find out the problem faced by them.
The study would recommend all the suitable strategies to organization which will
enhance the consumer preference for yeti.
This study will also try to find out the areas which need to be improved so as to gain a
competitive advantage.
To understand the triggers used to choose competitors Product as compared to yeti.
56
57
SUV ANALYSIS
The growing consumerism in Indian market has made the customer to have various options
which has improved the customer bargaining power too. Indian companies like Mahindra &
Mahindra, Tata have head on head competition among Mahindra Scorpio & Tata Safari.
Surrounded by the foreign players who occupied Indian automobile industry only Toyota had
a main impact in the SUV division with hot selling models like yeti, Innova & Fortuner.
Additional players like Hyundai Motors India limited, Maruti Suzuki, Ford, Mitsubishi have
a a smaller amount of market share. Mahindra leads the SUVs division ever since the takeoff
of its Scorpio from Mahindra which has its own victory stories. Mahindra XUV 500 which is
established indigenously by M&M was a hit because of the confidence that the customers had
in Scorpio. The lists of SUVs in Indian market are listed below.
Company Products
TATA Safari, Aria
Maruti Ertiga
Toyota Innova, Fortuner
Skoda Yeti 4*2
Renault Duster, Koleos
Force Force One
Mitsubishi Pajero, Outlander
Nissan X trail
Mahindra Scorpio, Bolero, XUV 500, Thar
Ford Endeavour, Eco Sport
Audi Audi Q3
Chevrolet Captiva
Volkswagen Touareg
BMW BMW X3
Land Rover Range Rover Evoque
58
The year 2012-13 will be the year of SUVs for India; all international auto players have their
eye on emerging Indian market. The regular age of a consumer buying an SUV has reduced
from 39 to 31 years, which reflects the market prospective of Indian SUV market is
prosperous due to increase in buying power of young generations. This year’s Auto expo in
New Delhi there were more than 1500 contestants from 23 nations. New contestants in the
Indian SUV are Mercedes ML class, Renault Koleos, SsangYong Korando, Mahindra W201,
Force one Safari Merlin, Touareg, Audi Q3etc.
The growing craze for SUV market has hindered the growth of Indian small car segment.
While there are countless SUVs arriving Indian market; M&M after occupying the Indian
markets has started entering US markets; it exported more than 11000 SUVs and targeting to
be the biggest exporter in this division. The much awaited XUV 500 is a hit with 25,000
bookings received since its launch. SIAM report says that India has the largest proportion of
the residents who are below 35 years in that 70% are probable buyers; which can be only a
myth in any other part of the world.
The factors favoring the growth of SUV segment:
1. Developing Indian economy
2. Growth in disposable income
3. Easier financing choices
4. Transforming consumer life style
5. Sporting appeal
6. Great performance engine
7. Low Price of diesel compared to petrol
8. Desire of Middle class societies
9. Local manufacturing decreases price
10. Representation of status
11. Growing brand conscious among individuals
On the contrary side the increase of SUVs will cause a significant destruction to the
environment with their fuel consumption and carbon discharge. The diesel price which is
59
given in a backed price is consumed in a greater quantity by SUVs which is possessed by
high end of the society. The rise of SUVs market will again increase diesel consumption
causing fuel price hike. Hence SUV manufacturers face an unlimited contest ahead in
manufacturing ECO friendly vehicle improved performance without compromising the
“mileage”; which is the utmost key deciding issue in Indian context.
Sports-utility vehicle (SUV) division which recorded the fastest progress rate in the last year.
SUVs, which cost closely three times (or even more) what an entry- level car does, grew a
huge 32% in the year, powered by higher demand for both India-made and imported models.
The year also saw that, while the market faced a slew of negatives like high interest rates and
increase in petrol prices, the demand for costlier cars was not reduced. Sedans (market share
19%) saw demand increase by 15%, and this was powered by superior models like the
Hyundai Verna, VW Vento and Chevrolet Cruze.
The rapidly- improving road structure and the gradual love of Indian people to travel together
between cities are fuelling the demand. Also, the existence of diesel engines plays an
important part here. Another reason behind the success of the SUVs is that the quantity of
offerings in this segment is rising rapidly.
Certain models like Toyota Fortuner & Mahindra’s latest launch XUV500 have the
distinction of a long waiting list for them. Other companies that are set to unveil new SUVs
include Ford, Renault, and Audi. The SUV division has witnessed a fantastic progress in
India over the last few years and holds the maximum potential in terms of demand.
At present-day SUV accounts for 15% of total passenger car market which are expected to
develop up at 25% in next three years. AS Finance Minister also declared a hike in impo rt
duty to 75 per cent from 60 per cent for assembled SUVs and MUVs costing more than
$40,000. The declared increase in excise tax for cars made in India to 27 per cent would only
have a minor impact on car costs.
Shares in Mahindra & Mahindra, India's prominent SUV maker, whose entire model range
runs on diesel, increased as much as 6.1 per cent. Diesel car sales have improved to account
for about 40 % of new buying in India, compared to less than 20 per cent a few years ago.
The diesel model of Maruti Suzuki's common new Swift hatchback has a waiting list longer
than six months. A hurry to buy vehicles before the budget increased car sales in February to
their highest level.
60
Cutting the subsidy, which makes the fuel about 50 per cent reasonable than petro l, is a
political move due to diesel's extensive use in India's huge farming business.
61
PROJECT ANALYSIS
A survey was carried out for a sample of 100 consumers (50 current & 50 potential) to
understand their expectation from the vehicle and even for getting feedback about yeti and
dealership. The survey gave the following results:-
1) What do you think is more important to you before buying product.
Loyal towards Percentage of respondents
Brand/Company 67%
Dealers/ Service provider 33%
ANALYSIS:
As we can see that a large no. of people around 67% of our sample agreed to consider Brand
as important factor while purchasing any product. Still almost one third of Customers prefers
to buy it from a specific dealer rather than Brand.
torque Automotive being the oldest dealer of SKODA has gained a huge loyalty base because
of its presence in many residential Areas.
67%
33%
Loyalty
Company/Brand
Dealer/Service provider
62
2) Which factors do you consider while buying a car?
Purchase Influencing Factors % of respondents
Price 19%
Mileage 15%
ROI 10%
Resale 14%
Dealer network 14%
Service reach 16%
Others 13%
ANALYSIS:
As we all know India is a price sensitive country, pricing of the product affects the buying
decision of a customer, a large no. of customers agree that the presence of dealer network and
resale value of product is also one of the driving factors which affect the buying decision of
Cars.
…
19.00%
15%
10.00%
14.00% 14%16.00%
13.00%
0.00%2.00%4.00%6.00%8.00%
10.00%12.00%14.00%16.00%18.00%20.00%
Factors Influencing Purchase
Factors Influencing Purchase
63
3) Please tick the appropriate reasons for your decision of purchasing SUV vehicle:
Reasons for purchasing SUV % of respondents
Safety 23%
Off-roading 17%
Comfortable/Spacious 21%
Powerful 24%
Style statement 9%
Others 6%
ANALYSIS:
Reasons for purchasing SUV have increased now a days because customer want a powerful,
comfortable/spacious car as from the above graph we can see that.
23.00%
17.00%
21%
24.00%
9.00%
6.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Reasons for purchasing SUV
Reasons for perchasing SUV
64
4) How did you come to know about Skoda yeti?
Awareness % of respondents
Reference 21%
Dealer 10%
Newspaper Ad 16%
Leaflets/Banners 17%
Demo activity 8%
Online 19%
Others 9%
ANALYSIS:
A large number of potential customers has not even heard of YETI, a large number of
Customers came to know about Aria from various websites and references which is not a
good things.
0%
5%
10%
15%
20%
25%21%
10.00%
16.00% 17%
8.00%
19.00%
9%
Awareness about YETI
65
5) Feedback for yeti
Rating for Looks of yeti % of respondents
1 14%
2 30%
3 16%
4 13%
5 27%
ANALYSIS:
Looks is considered to be one of the most important things while buying any SUV, After
interacting with so many customers and even sales advisors, I realized that yeti lacks in
giving a sporty and attractive look. Though many of the customers prefer the look of yeti,
they considered it as a brand identity of skoda vehicle.
14.00%
30.00%
16%
13%
27%
Looks
1
2
3
4
5
66
Rating for Comfort of yeti % of respondents
1 4%
2 2%
3 9%
4 24%
5 61%
ANALYSIS:
When a person is investing a huge amount to buy SUV he definitely expects it to be a
comfortable vehicle, yeti customers are not just happy but delighted with the comfort of yeti.
More than 80 percent people consider yeti as one of the best vehicle when it comes to
comfort.
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
1 2 3 4 5
4.00% 2.00%
9.00%
24.00%
61%
Comfort
Comfort
67
Rating for Power of yeti % of respondents
1 9%
2 20%
3 25%
4 22%
5 24%
ANALYSIS:
Yeti with its engine has amazed so many people but a large no. of people think that the power
output of yeti can further be increased.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
1 2 3 4 5
9.00%
20.00%
25.00%22.00%
24%
Power
Power
68
Ease of maintenance of YETI % of respondents
1 12%
2 37%
3 23%
4 16%
5 12%
ANALYSIS:
Only owners feedback was taken for this question, we can see that a large no. of customer
thinks that it’s not easy to maintain YETI, while interacting with them I realized it’s not the
vehicle but the dealership which is causing them problem. As it takes too long for them to get
back their vehicle, no pickup drop facility, Parts not available with dealer, low level of
product knowledge to servicing staffs etc.
12%
37%
23%
16%
12%
Ease of Maintainance
1
2
3
4
5
69
YETI FUEL EFFIENCY % OF RESPONDENTS
1 23%
2 16%
3 39%
4 6%
5 16%
ANALYSIS:
Fuel efficiency differs from person to person due to driving habit, road and traffic conditions,
fuel quality, loading pattern and maintenance practices so many of the customers are getting
average of 12 in city and 13 on highway while some of them are getting 10 in city and 11 in
highway.
0%
5%
10%
15%
20%
25%
30%
35%
40%
1 2 3 4 5
23%
16%
39%
6%
16%
Fuel Efficiency
Fuel Efficiency
70
COST % of respondents
1 22%
2 18%
3 22%
4 13%
5 25%
ANALYSIS:
A customer should always feel that he has made a right decision by buying the car, as the
price of Yeti has been rising consistently due to increase in tax and other things many people
who bought Yeti previously are very happy, but the current buyer and potential customer
thinks that the vehicle is overpriced and they expect it to be lowered down.
0%
5%
10%
15%
20%
25%
1 2 3 4 5
22%
18.00%
22%
13%
25.00%
COST
71
ASTHETIC FEATURE % OF RESPONDENTS
1 3%
2 7%
3 11%
4 30%
5 49%
ANALYSIS:
Yeti has done a tremendous job in adding features to yeti, the fit and finish of Yeti is
tremendous, as we can see that more than 75% of people are very happy with the cosmetic
features offered by yeti.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1 2 3 4 5
3%7.00%
11%
30.00%
49%
Asthetic features
Cosmetic features
72
LUGGAGE SPACE % OF RESPONDENTS
1 6 %
2 6%
3 29%
4 19%
5 40%
ANALYSIS:
Yeti has been provided with ample space for luggage so almost every customer was happy
with that though some owners who are using it as a cab suggested that they could have given
a company fitted roof racks/ cargo carrier.
6.00%6.00%
29%
19.00%
40.00%
Luggage Space
1
2
3
4
5
73
SAFETY FEATURE % OF RESPONDENTS
1 8%
2 13%
3 24%
4 16%
5 39%
ANALYSIS:
Yeti is equipped with so many of the safety features For other variants mostly all the
customers were satisfied with the safety features offered. This will be good for customer from
safety point of view.
8%
13.00%
24.00%
16%
39%
0% 10% 20% 30% 40% 50%
1
2
3
4
5
Safety Features
Safety Features
74
6) Feature importance:
ABS/EBD % OF RESPONDENTS
1 8%
2 6%
3 23%
4 27%
5 37%
ANALYSIS:
Majority of people thinks that ABS/EBD is one of the most important features of SUV and
Yeti. As is helps in controlling the vehicle at the time of emergency while driving at a high
speed. Now days almost all the vehicles are installing ABS in their vehicle due to demand
from customers side.
ABS/EBD0%
10%
20%
30%
40%
1 2 3 4 5
8%6.00%
23.00%27%
37%
ABS/EBD
ABS/EBD
75
MORE THAN 2 AIRBAGS % OF RESPONDENTS
1 24%
2 14%
3 20%
4 13%
5 29%
ANALYSIS:
Airbags are considered to be one of the important passive safety features of any car; many
respondents think that two Airbags are more than enough for any vehicle while a large chunk
of customers are in favor of more than 2 airbags in vehicle so as if there is any side impact
passengers sitting at back row also should not have any injury.
0%
5%
10%
15%
20%
25%
30%
1 2 3 4 5
24%
14.00%
20.00%
13.00%
29.00%
More than 2 AIRBAGS
> 2 AIRBAGS
76
CRUISE CONTROL % OF RESPONDENTS
1 33%
2 27%
3 13%
4 16%
5 11%
ANALYSIS:
Cruise control helps a driver to drive vehicle at a constant speed without giving acceleration
to vehicle, it is a growing trend in India but due to non-availability of good roads and heavy
traffics this feature is also not of a much use.
Cruise control
0.00%
10.00%
20.00%
30.00%
40.00%
1 2 34
5
33.00%
27.00%
13% 16.00%
11.00%
Cruise control
Cruise control
77
GLOVEBOX CHILLER % OF RESPONDENTS
1 7%
2 13%
3 33%
4 22%
5 25%
ANALYSIS:
Chiller Box is considered to be a must for all high end class cars, as Yeti is meant for long
journey and family journey purpose; it helps in keeping some drinks and chocolate for
children.
Even customers who are using Yeti for taxi purpose thinks it’s an important feature and it
makes customer more comfortable while going for long journeys.
0%
5%
10%
15%
20%
25%
30%
35%
1 2 3 4 5
7%
13%
33%
22.00%25.00%
Chiller Box
Chiller Box
78
FOG LAMPS % OF RESPONDENTS
1 11%
2 10%
3 19%
4 22%
5 38%
ANALYSIS:
The people consider fog lamps to be an important feature, as a large number of customer
visits hill stations for lamps help them in clear visibility.
11.00% 10.00%
19%22%
38%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
1 2 3 4 5
Fog lamps
Fog lamps
79
ALL WHEEL DRIVE % OF RESPONDENTS
1 21%
2 9%
3 33%
4 20%
5 17%
ANALYSIS:
SKODA-AUTO has introduced 2 wheel drive version of Yeti. Then Yeti was launched in an
All-wheel drive version but not so many people are fond of all wheel drive in India
21.00%
9.00%
33.00%
20.00%
17%
AWD
1
2
3
4
5
80
ASTHETIC FEATURE % OF RESPONDENTS
1 15%
2 20%
3 27%
4 13%
5 25%
ANALYSIS:
People consider Reverse sensors and camera as auxiliary feature, for some of them it’s very
important as it helps them in parking bigger vehicle.
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%
1
2
3
4
5
15.00%
20.00%
27%
13.00%
25.00%
Reverse parking sensor/camera
Reverse parking sensor/camera
81
TWIN EXHAUST % OF RESPONDENTS
1 8%
2 7%
3 16.%
4 29%
5 40%
ANALYSIS:
Twin Exhaust helps to reduce engine strain and helps engine to perform better, it is also
considered as an accessory by customer to enhance the looks of vehicle.
0%
5%
10%
15%
20%
25%
30%
35%
40%
1 2 3 4 5
8% 7%
16.00%
29%
40.00%
Twin Exhaust
Twin Exhaust
82
7) Relative Brand Rating: please rank the vehicles as per your preference (1 being the best)
RELATIVE BRAND RATING % OF RESPONDENTS
YETI 17%
CAPTIVA 23%
ARIA 12%
OUTLANDER 27%
XUV500 21%
ANALYSIS:
Captiva and Outlander are being considered as the top sought brand by customers while Xuv
is on third rank followed by Yeti, Aria is not being considered as a Family car as many
people consider it as a tourist vehicle. Yeti is being ranked on an average position where
many people think that this is one of the best product offering from SKODA-AUTO.
17%
23%
12%
27.00%
21.00%
0%
5%
10%
15%
20%
25%
30%
Yeti Captiva Aria Outlander Xuv 500
Rated as No. 1
Rated as No. 1
83
8) How will you rate the service offered at TORQUE AUTOMOTIVE PVT. LTD
dealerships: (1 being lowest and 5 highest)
DEALERSHIP RATING % OF RESPONDENTS
1 48%
2 27%
3 9%
4 10%
5 6%
ANALYSIS:
A large number of customers are not happy with the service provided by dealership,
before/during and even after the sale is done. Many of customers are facing various issues
with vehicle due to negligence of dealers.
48.00%
27%
9% 10.00%6%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
1 2 3 4 5
Dealership rating
Dealership rating
84
9) Are you satisfied with the Information/Demo/Test drive given to you:
INFORMATION FROM SALES
ADVISOR
% OF RESPONDENTS
YES 57%
NO 43%
ANALYSIS:
We can see that around 57% of people are not satisfied with the demo/ test drive given to
them, the basic reason which I have identified is lack of maintenance of Test drive vehicle.
57%
43%
Information
Yes
No
85
RANKS FIVEN TO SKODA YETI FOR ITS FEATURES
(SCALE 1 – 5, 1 means Low grade and 5 means High
Grade)
PARTICULARS RANKS
LOOKS 2
COMFORT 5
POWER 3
MAINTANACE 4
FUEL 3
COST 5
ASTHETIC FEATURES 5
LUGGAGE SPACE 5
SAFETY 5
86
HYPHOTHESIS TESTING
Ho :- The data are uniformly distributed
Ha :- The data are not uniformly distributed
Step 2:-
α = 0.5
Step 3:-
C
Step 4:-
Fo Fe Fo-Fe (Fo-Fe)2 (Fo-
Fe)2/E
YETI 17 20 -3 9 0.09
CAPTIVA 23
20 3 9 0.09
ARIA 12 20 -8 64 0.64
OUTLANDER 27
20 7 49 0.49
XUV500 21 20 1 1 0.01
Total 100 100 0 132 1.32
87
FINDINGS
Torque motors do communication from their customers by the way of
telephone.
Secondly they stand there employees to the place of the customer to take their
feedback
They send their employees for the insurance paperwork, to take their car from
their place to the service station.
The main tool of the communication are face to face, telephone, and through
message remainders.
SKODA at the time of launching Yeti has taken help of various promotional
tools and tried to make an impact on customers mind, but after some time their
focus started changing.
Due to low promotion Yeti has a very less awareness in Market; moreover
SKODA has been sceptical about the positioning of Yeti.
SKODA-AUTO is an extremely well established brand.
Further initiatives and efforts could see SKODA-AUTO at the very top for the
entire range of products dealing with high class comfortable vehicle.
Current owners are facing a lot of problem relating to service of vehicle and
even with the low availability of parts.
One of the main problem is that customer advisors directly focus on price
rather than showing them vehicle and its features.
Yeti has a huge potential in the market as almost all the current owners are
well satisfied with vehicle and its performance.
The biggest issue with yeti is its look which is not being accepted by
customers.
88
SUGGETIONS
Though it’s not a big issue but we should try to make people more brand loyal than
dealer loyal so that in case the dealer chose to go with competitors product we should
not lose our customer base.
Company can adopt a better value chain model so as to reduce the cost of product and
price them which attracts a customer and also profitable for seller. SKODA-AUTO
with a network of more than 800 dealer across India has a good presence; still
company has a large scope in Tier 3 and Tier 4 cities.
SKODA should promote yeti as the segment to which skoda is targeting for yeti are
upper middle class or higher class people who have a large no. of options available in
the market. If people themselves are searching for vehicle and current customers are
referring yeti to potential customers than obviously there is a market pull for the
product but due to lack of awareness of product it’s not being converted in final sale.
A vehicle is designed after taking review from many people, and so many of qualified
engineers and designers design in keeping in mind various things. But I would suggest
that a small modification in its front look can be done so as to make it look different
from a regular skoda Car.
Almost all the current and potential customers are happy with the comfort of yeti;
skoda can promote its car keeping in mind this point which can prove to be biggest
differentiator from other vehicles.
Customers can be given guidance so as to give them a proper knowledge about the
driving habit which will help them in
getting high average.
Many people are not aware of product because of which they feel it doesn’t worth the
price its charging, we should give them proper information regarding project.
Though the customers are very happy with the features given in Yeti but many of
them are not happy with the quality of plastic used as some of them are facing
problem with low quality of plastic, this can be improved, some of them even raised
question on the excess no. of roof utility box provided which was not necessary in the
vehicle.
Yeti provides enough space for luggage, though it can offer roof racks to customers
while buying car at some discounted price.
89
An option to customers can be given who want to add additional airbags in car at the
time of booking itself by paying additional cost.
Due to low usage on Indian roads Cruise controls are not very much in demand, but
we should try to create awareness about it, as it’s very useful on highways, it helps to
differentiate Yeti from other vehicles.
Fog Lamps is largely used feature of any vehicle, we should try to promote it as it
helps in clear visibility.
Many people are still thinks that AWD is not necessary for them and it’s a less used
feature but in Indian roads where roads are uneven and at many places where there are
no roads, it is a very useful feature, so people should be given proper knowledge
about this feature.
As Yeti is a big vehicle reverse parking camera/sensors help in parking vehicles, so
people should be informed about this feature and we should tell them about the
advantage of this feature.
Yeti has 1900 cc engine and dual exhaust helps the vehicle to give a better
performance, so dual exhaust is a must for Aria irrespective of variants.
Yeti customers are totally a different segment, they should be given preference in
servicing of vehicle, An Yeti servicing should not take more than a day, dealership
service centers should keep a track on the stock of parts of Yeti as many of customers
keep on waiting for parts for more than 2-3 months.
PRODUCT RELATED:
Yeti is being designed by Top designers of SKODA-AUTO keeping in mind the expectation
and also the financial constraints, no doubt it’s a master piece created by them. But as per my
personnel opinion after interacting with costumers, I would like to suggest some important
concerns of customer
Positioning is one of the very critical aspects of any product, just by labeling
the product as a crossover does not make it a crossover. The brand should
produce sufficient evidence that it belongs to a new breed.
Skoda should promote yeti as a large number of owners are happy with the
product but due to low awareness the sale of yeti is low.
90
Skoda should also take part in vehicle exhibition of premium cars which is
organized by various organizations.
All the promotional offers/ discounts of month should be informed to dealers
as soon as possible because a large number of inquiries which is being made
on first week of month are lost to competitor
DEALERSHIPS/ SERVICE RELATED
Sales Advisors should be motivated so as to sell Yeti.
Dealerships should give preference to yeti owners in service, not more than 24
hours should be taken to service the vehicle.
Dealers should also maintain a proper stock of parts of Yeti, if they don’t have
any part available they should arrange for it.
Sales advisors should focus on customers rather than filling up green forms.
Test drive vehicles should be maintained carefully as almost every dealerships
vehicle has some problem.
Sales Advisors should use the Video player which is provided to them while
dealing with Yeti Customers.
Various kinds of Rally/ Events related to Yeti could be organized in a
particular city.
91
CONCLUSION
The present research project on the customer awareness and preference of Skoda Yeti helps
to analyze and understand the present market scenario in the city of Rajkot. Volkswagen are
the strongest competitors so Skoda is required to work on its weaknesses like offers at the
time of convincing customers and giving various financial plans. At last I would like to say
that Skoda should maintain and improve its market share in Gujarat by improving its services
and providing customer satisfaction
92
SCOPE AND LIMITATIONS
SCOPE
Examines and identifies key information and issues about 'TORQUE AUTOMOTIVE
PVT LTD' for business intelligence requirements
Study and presents the company's strengths, weaknesses, opportunities (growth
potential) and threats (competition). Strategic and operational business info is accurately
stated.
The profile also covers info on business processes, company history, major products
and services, prospects, key challengers, locations and subsidiaries.
LIMITATIONS
Change in certain trends like rise in the price of cars may affect the data.
The research is purely driven by the responses of the Customers.
The research was carried out in only Rajkot Area.
A large number of customers who have bought vehicles in 2012 were included in this
research which may also affect the result.
The sample size of competitors’ product is not very high due to non-availability of
data.
93
LEARNING FROM SIP
Dealing with different types of customers.
Various procedures to be followed while closing any deal.
Consumer insights about SUVs
Various ways of contacting customers and increasing inquiries for vehicle.
Essential things which should be kept in mind while organizing events.
Patience.
Various stages of sales and action required at that stage.
How to deal with dealerships/ service provider.
94
BIBLIOGRAPHY
WEBSITES:
www.data.worldbank.org
www.skoda-auto.co.in
www.siamindia.com
www.carwale.com
www.managementpunditz.com
http://planningcommission.nic.in/data/datatable/index.php?data=datatab
www.newskodayeti.co.in
Magazines/ Books/Newspaper:
Times of India
Business world’s, ‘The Marketing White book’; 2011-2012
Marketing management
Philip Kotler, 13th Edition, Pearson Education
Marketing management, N. D. Gami.
95
ANNEXURE
QUESTIONNAIRES:
Understanding Consumer Insights of skoda yeti
1. Gender Male Female
2. Profession Business man Private Job
Government Job Others
3. Income (per annum) 2,00,000 to 5,00,000 5,00,000 to 10,00,000
10, 00,000 to 15, 00,000 15,00,000 or more
4. What do u think is more important to you before buying product
o Company/Brand
o Dealer/Service provider
5. Which factors do u consider while buying a car
o Price
o Mileage
o ROI
o Resale
o Dealer network
o Service reach
o Other specify………….
6. Please tick the appropriate reasons for your decision of purchasing SUV vehicle:
(You can select multiple options)
o Safety
o Off-roading
o Comfortable/Spacious
o Powerful
o Style statement
o Other please specify ………………………….
96
7. How did you come to know about YETI:
Reference
Dealer
Newspaper Ad
Leaflets/Banners
Demo activity
Online
Others please specify __________________
8. Feedback for YETI: (1 being Lowest and 5 Highest)
Sr.No. Parameters 1 2 3 4 5
1. Looks
2. Comfort
3. Power
4. Ease of Maintenance
5. Fuel efficiency
6. Cost
7. Cosmetic Features
8. Luggage space
9. Safety features
9. Features Importance :
Sr.
No.
Features Not
Important
Least
Important
Neutral Highly
Important
Utmost
Important
1. ABS/EBD
2. More than 2
Airbags
3. Cruise Control
4. Chiller box
5. Fog lamps
97
6. Reverse parking
sensor/camera
7. Twin exhaust
8. AWD
10. Relative Brand Rating: please rank the vehicles as per your preference (1 being the
best)
YETI
CAPTIVA
ARIA
OUTLANDER
XUV500
11. How will you rate the service offered at SKODA-AUTO PVT LTD dealerships:
(1 being lowest and 5 highest)
o 1
o 2
o 3
o 4
o 5
12. Are you satisfied with the Information/Demo/Test drive given to you:
o Yes
o No
13. Personal details:
Name: …………………………………………..
Profession: ……………………………………..
Contact No. : …………………………………….